Reputation as Reservoir: Buffering Against Loss in Times of Economic Crisis

Jones, Gary H.; Jones, Beth; Little, Philip

doi:10.1057/palgrave.crr.1540096

Cited by 188 publications

(140 citation statements)

References 8 publications

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“…This is consistent with the argument that stocks of socially responsible companies provide better investments during periods of crisis (e.g. Jones et al, 2000;Schnietz and Epstein, 2005).…”

Section: Resultssupporting

confidence: 78%

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Investing in Mutual Funds: Does it Pay to Be a Sinner or a Saint in Times of Crisis?

2010

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We investigate the performance of US socially responsible funds that employ different stock selection criteria: religious, social and 'irresponsible' criteria. Performance is evaluated over different market regimes using a Markov-switching conditional CAPM model that defines different states of the market endogenously. The 'irresponsible' fund outperforms in low volatility regimes, but underperforms in high volatility regimes. Furthermore, the risk of the 'irresponsible' fund is higher in low volatility regimes and lower in high volatility regimes. Socially responsible funds do not adjust risk according to market conditions. These findings suggest that socially responsible companies might provide better investments during periods of crisis. AbstractWe investigate the performance of US socially responsible funds that employ different stock selection criteria: religious, social and 'irresponsible' criteria. Performance is evaluated over different market regimes using a Markov-switching conditional CAPM approach that defines different states of the market endogenously. The 'irresponsible' fund outperforms in low volatility regimes, but underperforms in high volatility regimes. Furthermore, the risk of the 'irresponsible' fund is higher in low volatility regimes and lower in high volatility regimes. Socially responsible funds do not adjust risk according to market conditions. These findings suggest that socially responsible companies might provide better investments during periods of crisis.

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“…This is consistent with the argument that stocks of socially responsible companies provide better investments during periods of crisis (e.g. Jones et al, 2000;Schnietz and Epstein, 2005).…”

Section: Resultssupporting

confidence: 78%

“…There are only very few studies that have addressed this issue directly (e.g. Schnietz and Epstein, 2005;and Jones et al, 2000). We consider this a major contribution of this paper.…”

Section: Introductionmentioning

confidence: 99%

Investing in Mutual Funds: Does it Pay to Be a Sinner or a Saint in Times of Crisis?

2010

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“…Jones et al [55] found that firm's strong reputation for CSR results in higher resistance to valuation losses during stock market plunges than other, lower-reputation companies. Schnietz and Epstein [56] observed the same regularity.…”

Section: Corporate Social Performance and Financial Performance: The mentioning

confidence: 99%

Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis

2016

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This study examines the impact of corporate sustainability (CS) on stock market returns for FTSE 350 companies over the period 2006-2012. We find that an investment strategy that bought shares in companies with balanced financial, social, and environmental activities would have earned an annual four-factor alpha for a value-weighted portfolio of 3.54% per year during the sample period and 2.98% above industry benchmarks. In addition, we find that CS is negatively correlated with stock return volatility, and investing in companies with CS not only generates higher returns during peak phases, but also diminishes shareholders' losses during bear phases. We have also carried out an additional, out-of-the-sample analysis for the years 2013-2015 which confirmed our results.

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“…Furthermore, Huang [81] examined, four crises response messages in terms of three factors in communicating these messages: consistency, quickness, and prompt response. Compensation strategy is good to overcome the effect of product -harm crisis.…”

Section: Product Harm Crisismentioning

confidence: 99%

Effect of Product-harm Crisis on Customer's Based Brand Equity: The Moderating Role of Attitude towards Brand

Bilal¹,

Idrees²

2017

aeb

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A company importance can be changed by product-harm crisis (PHC). There are so many cases of PHC where weak response of the company's has resulted in negative effect on brand equity. Still less research studies were conducted on the effect of product-harm crises. The objective of this research is to investigate (a) the effect of PHC on customer's based brand equity (BE) (b) the moderating role of attitude towards brand (ATB) between PHC and BE. The population of this study consists of nine universities of Peshawar district offering business programs. Two universities were purposively selected. A sample of 200 undergraduate business students has been selected. After reading self-designed newspaper article by sampled undergraduate business students, questionnaires were filled on five and seven points' likert-scales. To investigate the effect of PHC on BE, simple linear regression was used. In order to measure the before and after effect of stone -walling response of a company on the relationship between PHC and BE, Wilcoxon signed-rank test was used. Also moderating effect of ATB was measured through SPSS. The overall results demonstrated that relationship between PHC and BE is statistically significant and negative. Additionally, the inclusion of ATB as a moderator has lessened the negative effects of PHC on BE. The effect of PHC on BE before stonewalling response was less negative as compared to after.

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Reputation as Reservoir: Buffering Against Loss in Times of Economic Crisis

Cited by 188 publications

References 8 publications

Investing in Mutual Funds: Does it Pay to Be a Sinner or a Saint in Times of Crisis?

Investing in Mutual Funds: Does it Pay to Be a Sinner or a Saint in Times of Crisis?

Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis

Effect of Product-harm Crisis on Customer's Based Brand Equity: The Moderating Role of Attitude towards Brand

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